Zanzibar has secured a financial boost as Stanbic Bank Tanzania and the People’s Bank of Zanzibar (PBZ Bank) collaborate to provide a local syndication loan worth TZS 185 billion. This funding is set to accelerate the island’s socio-economic development, with a focus on key sectors such as fisheries, maritime trade, energy, tourism, and infrastructure.
Major Financial Commitment for Development
Stanbic Bank Tanzania and PBZ Bank, serving as Co-Mandated Lead Arrangers, have committed to this financing as part of their ongoing efforts to drive sustainable growth in Zanzibar. The first tranche of the loan is aimed at bridging the infrastructure gap, strengthening the Blue Economy, and creating opportunities for economic transformation. The funds will contribute to Zanzibar’s development budget, which stands at TZS 1.7 trillion for the current fiscal year.
Speaking on the significance of this investment, a representative from Stanbic Bank Tanzania highlighted that this initiative is more than just financial support—it is a catalyst for long-term progress. Over the years, Stanbic Bank Tanzania has facilitated over USD 1 billion (approximately TZS 2.6 trillion) in financing for major development projects across the country.
Strengthening the Blue Economy and Infrastructure
The loan is aligned with Zanzibar’s domestic borrowing strategy to address financial gaps in key development projects. By focusing on the Blue Economy, the financing aims to unlock sustainable economic opportunities, leveraging the region’s rich marine resources. The funds will also enhance infrastructure development, public service delivery, and overall economic stability.
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At the official signing ceremony held on March 5, 2025, in Unguja, Zanzibar, key government officials highlighted the loan’s critical role in economic progress. Dr. Saada Mkuya, Minister of State in the President’s Office for Finance and Planning, emphasized that the financing would support the government’s vision to increase Zanzibar’s economic growth from 7.3% to over 7.4%.
The partnership between Stanbic Bank Tanzania and PBZ Bank marks a milestone in local financial collaboration. Dr. Juma Malik Akil, Permanent Secretary of Zanzibar’s Ministry of Finance and Planning, acknowledged the importance of this cooperation in mobilizing domestic capital for essential projects. The Managing Director of PBZ Bank reaffirmed the institution’s dedication to empowering the Zanzibar government and improving livelihoods through strategic financial solutions.
In addition to the syndicated loan, Stanbic Bank Tanzania has announced plans to expand its presence in Zanzibar by opening its first branch on the archipelago this year, as the bank celebrates its 30-year anniversary in Tanzania.
Economic and Social Impact
The TZS 185 billion loan is expected to deliver widespread benefits across Zanzibar, including:
- Economic Growth: Investments in infrastructure, fisheries, and trade will create jobs, enhance business opportunities, and uplift local communities.
- Improved Public Services: The loan will help strengthen healthcare, education, and energy supply, contributing to a better quality of life for residents.
- Tourism and Trade Expansion: Enhancements in maritime trade and tourism infrastructure will attract more visitors and boost Zanzibar’s economic backbone.
- Sustainability and Stability: The focus on the Blue Economy promotes sustainable resource management, ensuring long-term environmental and economic benefits.